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Dubai Default: Is the Financial Crisis Really Over?

Source: Green Left Weekly

The November 26 announcement that the sovereign fund Dubai World would require a six-month pause on payments on its US$60 billion debt sent tremors through international stock markets.

In response, European markets fell 3%, the November 28 Sydney Morning Herald said.

On November 30, the government of Abu Dhabi, Dubai’s neighbour and fellow member of the United Arab Emirates (UAE), issued a statement confirming that it would bailout Dubai’s debt.

Not all of it -some banks would still lose something – but enough to ensure that major banks with “exposure” to Dubai World, including the Royal Bank of Scotland, Citi and HSBC, would not again be plunged into crisis. read more